IJH vs. IWR: What’s The Difference?

The iShares Core S&P Mid-Cap ETF (IJH) and the iShares Russell Mid-Cap ETF (IWR) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and IWR is a iShares Mid-Cap Blend fund. So, what’s the difference between IJH and IWR? And which fund is better?

The expense ratio of IJH is 0.14 percentage points lower than IWR’s (0.05% vs. 0.19%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided lower returns than IWR over the past ten years.

In this article, we’ll compare IJH vs. IWR. We’ll look at holdings and industry exposure, as well as at their fund composition and portfolio growth. Moreover, I’ll also discuss IJH’s and IWR’s performance, risk metrics, and annual returns and examine how these affect their overall returns.

Summary

IJH IWR
Name iShares Core S&P Mid-Cap ETF iShares Russell Mid-Cap ETF
Category Mid-Cap Blend Mid-Cap Blend
Issuer iShares iShares
AUM 63.4B 29.84B
Avg. Return 13.50% 14.15%
Div. Yield 1.07% 0.99%
Expense Ratio 0.05% 0.19%

The iShares Core S&P Mid-Cap ETF (IJH) is a Mid-Cap Blend fund that is issued by iShares. It currently has 63.4B total assets under management and has yielded an average annual return of 13.50% over the past 10 years. The fund has a dividend yield of 1.07% with an expense ratio of 0.05%.

The iShares Russell Mid-Cap ETF (IWR) is a Mid-Cap Blend fund that is issued by iShares. It currently has 29.84B total assets under management and has yielded an average annual return of 14.15% over the past 10 years. The fund has a dividend yield of 0.99% with an expense ratio of 0.19%.

IJH’s dividend yield is 0.08% higher than that of IWR (1.07% vs. 0.99%). Also, IJH yielded on average 0.65% less per year over the past decade (13.50% vs. 14.15%). The expense ratio of IJH is 0.14 percentage points lower than IWR’s (0.05% vs. 0.19%).

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Fund Composition

Industry Exposure

IJH vs. IWR - Industry Exposure

IJH IWR
Technology 14.81% 19.67%
Industrials 18.09% 14.54%
Energy 2.5% 3.48%
Communication Services 1.57% 4.64%
Utilities 2.9% 4.46%
Healthcare 10.89% 11.76%
Consumer Defensive 4.02% 3.82%
Real Estate 10.04% 8.31%
Financial Services 14.85% 11.64%
Consumer Cyclical 14.91% 13.59%
Basic Materials 5.42% 4.1%

The iShares Core S&P Mid-Cap ETF (IJH) has the most exposure to the Industrials sector at 18.09%. This is followed by Consumer Cyclical and Financial Services at 14.91% and 14.85% respectively. Energy (2.5%), Utilities (2.9%), and Consumer Defensive (4.02%) only make up 9.42% of the fund’s total assets.

IJH’s mid-section with moderate exposure is comprised of Basic Materials, Real Estate, Healthcare, Technology, and Financial Services stocks at 5.42%, 10.04%, 10.89%, 14.81%, and 14.85%.

The iShares Russell Mid-Cap ETF (IWR) has the most exposure to the Technology sector at 19.67%. This is followed by Industrials and Consumer Cyclical at 14.54% and 13.59% respectively. Consumer Defensive (3.82%), Basic Materials (4.1%), and Utilities (4.46%) only make up 12.38% of the fund’s total assets.

IWR’s mid-section with moderate exposure is comprised of Communication Services, Real Estate, Financial Services, Healthcare, and Consumer Cyclical stocks at 4.64%, 8.31%, 11.64%, 11.76%, and 13.59%.

IJH is 3.55% more exposed to the Industrials sector than IWR (18.09% vs 14.54%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 1.32% higher and 3.21% higher respectively (14.91% vs. 13.59% and 14.85% vs. 11.64%). In total, Energy, Utilities, and Consumer Defensive also make up 2.34% less of the fund’s holdings compared to IWR (9.42% vs. 11.76%).

Holdings

IJH - Holdings

IJH Holdings Weight
Bio-Techne Corp 0.8%
Molina Healthcare Inc 0.68%
Cognex Corp 0.68%
Fair Isaac Corp 0.64%
Camden Property Trust 0.62%
XPO Logistics Inc 0.6%
Masimo Corp 0.59%
SolarEdge Technologies Inc 0.57%
FactSet Research Systems Inc 0.57%
Graco Inc 0.56%

IJH’s Top Holdings are Bio-Techne Corp, Molina Healthcare Inc, Cognex Corp, Fair Isaac Corp, and Camden Property Trust at 0.8%, 0.68%, 0.68%, 0.64%, and 0.62%.

XPO Logistics Inc (0.6%), Masimo Corp (0.59%), and SolarEdge Technologies Inc (0.57%) have a slightly smaller but still significant weight. FactSet Research Systems Inc and Graco Inc are also represented in the IJH’s holdings at 0.57% and 0.56%.

IWR - Holdings

IWR Holdings Weight
IDEXX Laboratories Inc 0.51%
DocuSign Inc 0.51%
Twitter Inc 0.48%
Chipotle Mexican Grill Inc 0.47%
Roku Inc Class A 0.44%
Marvell Technology Inc 0.44%
DexCom Inc 0.44%
Trane Technologies PLC 0.43%
MSCI Inc 0.43%
Carrier Global Corp Ordinary Shares 0.43%

IWR’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Twitter Inc, Chipotle Mexican Grill Inc, and Roku Inc Class A at 0.51%, 0.51%, 0.48%, 0.47%, and 0.44%.

Marvell Technology Inc (0.44%), DexCom Inc (0.44%), and Trane Technologies PLC (0.43%) have a slightly smaller but still significant weight. MSCI Inc and Carrier Global Corp Ordinary Shares are also represented in the IWR’s holdings at 0.43% and 0.43%.

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Risk Analysis

IJH IWR
Mean Return 1.13 1.17
R-squared 86.39 91.52
Std. Deviation 16.8 15.66
Alpha -4.01 -2.8
Beta 1.15 1.11
Sharpe Ratio 0.77 0.86
Treynor Ratio 10.55 11.72

The iShares Core S&P Mid-Cap ETF (IJH) has a Sharpe Ratio of 0.77 with a Standard Deviation of 16.8 and a Treynor Ratio of 10.55. Its Mean Return is 1.13 while IJH’s Beta is 1.15. Furthermore, the fund has a R-squared of 86.39 and a Alpha of -4.01.

The iShares Russell Mid-Cap ETF (IWR) has a Beta of 1.11 with a Treynor Ratio of 11.72 and a Alpha of -2.8. Its Sharpe Ratio is 0.86 while IWR’s Standard Deviation is 15.66. Furthermore, the fund has a R-squared of 91.52 and a Mean Return of 1.17.

IJH’s Mean Return is 0.04 points lower than that of IWR and its R-squared is 5.13 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than IWR. The Alpha and Beta of IJH are 1.21 points lower and 0.04 points higher than IWR’s Alpha and Beta.

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Performance

Annual Returns

IJH vs. IWR - Annual Returns

Year IJH IWR
2020 13.61% 16.91%
2019 26.14% 30.31%
2018 -11.14% -9.13%
2017 16.19% 18.32%
2016 20.63% 13.58%
2015 -2.23% -2.57%
2014 9.64% 13.03%
2013 33.4% 34.5%
2012 17.76% 17.13%
2011 -1.89% -1.67%
2010 26.38% 25.25%

IJH had its best year in 2013 with an annual return of 33.4%. IJH’s worst year over the past decade yielded -11.14% and occurred in 2018. In most years the iShares Core S&P Mid-Cap ETF provided moderate returns such as in 2020, 2017, and 2012 where annual returns amounted to 13.61%, 16.19%, and 17.76% respectively.

The year 2013 was the strongest year for IWR, returning 34.5% on an annual basis. The poorest year for IWR in the last ten years was 2018, with a yield of -9.13%. Most years the iShares Russell Mid-Cap ETF has given investors modest returns, such as in 2016, 2020, and 2012, when gains were 13.58%, 16.91%, and 17.13% respectively.

Portfolio Growth

IJH vs. IWR - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJH $10,000 $37,266 13.50%
IWR $10,000 $39,751 14.15%

A $10,000 investment in IJH would have resulted in a final balance of $37,266. This is a profit of $27,266 over 11 years and amounts to a compound annual growth rate (CAGR) of 13.50%.

With a $10,000 investment in IWR, the end total would have been $39,751. This equates to a $29,751 profit over 11 years and a compound annual growth rate (CAGR) of 14.15%.

IJH’s CAGR is 0.65 percentage points lower than that of IWR and as a result, would have yielded $2,485 less on a $10,000 investment. Thus, IJH performed worse than IWR by 0.65% annually.


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